Over the past few decades, the production and consumption of plastics across the world have been exhibiting an exponential rise. Resultantly, there has been a dramatic increase in the generation of plastic waste, especially in high-income countries. The World Bank estimates that about 130 million metric tons per year (MTPY) of plastic waste is generated worldwide.

The recovery of these plastics is one of the major concerns at the global scale, from an ecological as well as economical point of view. This is compelling governments to enact strict regulations against the disposal of plastics and also encourage the development of technologies that utilize waste plastic and convert it into something fruitful. These regulations are, therefore, creating a conducive environment for the global market for recycled plastic and plastic waste to oil to thrive. The rapidly emerging plastic to oil (fuel) conversion technology is anticipated to complement the conventional plastic recycling technologies.

Besides this, the ever-rising demand for fuel is prompting organizations to capitalize on plastic wastes to generate oil, thereby escalating the installation of plastic to oil (fuel) systems across the globe. On the other hand, the declining prices of crude oil are adversely affecting the growth of the market. With all these factors put together, Transparency Market Research (TMR) projects the global market for recycled plastic and plastic waste to oil to reach a valuation of US$1.97 bn by 2024, progressing at a CAGR of 12.6% from 2016 to 2024.

Polyethylene to Remain Dominant through 2024

On the basis of plastic, the global recycled plastic and plastic waste to oil market is divided into polypropylene (PP), polyethylene terephthalate (PET), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), and other plastics. Polyethylene (PE) will dominate the market throughout the forecast period, owing to its higher energy conversion rates. Based on technology, the market is classified into gasification and synthesis, pyrolysis, and catalytic depolymerization processes. The pyrolysis segment will be the leading segment throughout the same period, due to its lower CAPEX requirements.

Large Availability of Plastic Waste Puts Europe at Forefront

Europe will continue to account for the lion’s share in the global arena until 2024, with the U.K. and Germany being at the forefront of growth. The substantial plastic debris in the municipal waste stream (MWS) offers immense opportunities to companies operating in the market. Commercialization of catalytic and pyrolysis depolymerization processes in various countries in the region is providing a significant boost to the recycled plastic and plastic waste to oil market.

Asia Pacific will be a strong contender in the market, with Japan and China being the major contributors. Increasing efforts by governments towards curtailing plastic waste and the modernization of different plastic-to-fuel technologies are contributing to the growth of the region.

North America is anticipated to exhibit promising growth avenues over the review period. The surging number of pilot projects by technology players to convert plastic waste into synthetic oil is providing an impetus to the market in the region. The availability of skilled workforce and government incentives is also attracting global participants to invest in the region. In Latin America market, Brazil will represent a large share.

The recycled plastic & plastic waste to oil market report by Transparency Market Research provides in-depth analysis of the recycled plastic & plastic waste to oil market globally. The report segments the market on the basis of plastic type, technology, end-fuel, and geography. The report analyzes the global recycled plastic & plastic waste to oil market in terms of revenue (US$ Mn) for the 2016–2024 period. For this research study, the base year is 2014, whereas the forecast is from 2016 to 2024. The report provides a comprehensive competitive landscape and features companies manufacturing plastic to oil (fuel) systems and companies operating plastic to oil (fuel) plants. This report includes the key market dynamics affecting the recycled plastic & plastic waste to oil market globally. The analysis in the report provides detailed insights into the global recycled plastic & plastic waste to oil market. Major dynamics such as drivers, opportunities, and restraints of the market were analyzed in detail and are illustrated in the report through tables. The report also provides a detailed industry analysis of the global recycled plastic & plastic waste to oil market with the help of Porter’s Five Forces model.

The recycled plastic & plastic waste to oil market has been broadly segmented on the basis of plastic type, technology, end-fuel, and geography. The recycled plastic & plastic waste to oil market has been segmented on the basis of plastic type into polyethylene (PE), polyethylene terephthalate (PET), polystyrene (PS), polyvinyl chloride (PVC), polypropylene (PP), and other plastics. Polyethylene (PE) was the largest plastic type segment of the recycled plastic & plastic waste to oil market globally, accounting for more than 40% of the global share, in 2014. Polyethylene (PE) is one of the most preferred plastics for plastic to oil (fuel) process owing to its higher energy conversion rates. High density polyethylene (HDPE) produces higher yield compared to low density polyethylene (LDPE), predominantly due to issues related to separation. Rising environmental concerns across the globe and increasing government and environmental regulations against disposal of plastics have boosted the installation of plastic to oil (fuel) systems across the globe. However, declining crude oil prices are expected to hamper the growth of global recycled plastic & plastic waste to oil market. Increasing plastic production globally is expected to boost the adoption of plastic to oil (fuel) systems in the next few years.

On the basis of technology, the global recycled plastic & plastic waste to oil market has been segmented into pyrolysis, gasification and synthesis, and catalytic depolymerization processes. Pyrolysis process is the most widely used technology for converting plastic into oil (fuel). Based on end-fuel, the global recycled plastic & plastic waste to oil market has been segmented into diesel, gasoline, kerosene, synthetic gases, and others. Diesel is the most widely produced fuel from plastic to oil (fuel) process.

The recycled plastic & plastic waste to oil market was analyzed for North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. Europe held the major share of the global recycled plastic & plastic waste to oil market, accounting for more than 35% of the global market share, in 2014. Asia Pacific was the second-largest recycled plastic & plastic waste to oil market, followed by North America, in 2014. Middle East & Africa and South & Central America held the fourth-largest and fifth-largest market share, respectively, of the global recycled plastic & plastic waste to oil market in 2014.